FHA Mortgage Calculator

FHA Loan Calculator

Using LendingTree’s FHA loan calculator is an easy and fast way to find out what your monthly mortgage payment to the Federal Housing Administration (FHA) will be. Our FHA loan calculator does the math for you so you can decide if the flexible qualifying guidelines are worth the extra FHA mortgage insurance cost.

How to use our FHA loan calculator

To get started, you’ll need five pieces of information: 

  1. ZIP code. FHA loan limits vary based on the county you live in and the type of property you’re buying. The 2021 limit is $356,362 for single-family homes in most parts of the country, but may be as high as $822,375 for single-family homes in high-cost areas. 
  2. Home price. If you’re not sure, enter the price of a home you’re interested in. 
  3. Down payment. The calculator automatically calculates a 3.5% down payment, based on a 580 minimum credit score. 
  4. Estimated credit score range. The FHA allows scores as low as 500, but only with a down payment of at least 10%.
  5. Loan type. Choose between a 30-year fixed rate loan for the lowest payment, or a 15-year fixed rate to pay your loan off faster.

Use the Advanced options on the FHA calculator to pinpoint your actual payment with extra details below:

      • Mortgage rate. If you’ve shopped for FHA interest rates already, enter the best quoted rate. 
      • Property taxes. Enter the exact property taxes for the most accurate figures.
      • Homeowners insurance. Get a homeowners insurance estimate here to get a ballpark on your premium.
      • HOA fees. The lender uses monthly homeowners association (HOA) dues to qualify you, but they’re paid separately from your mortgage payment.

What the FHA home loan calculator results mean

Within seconds of filling in the basic and advanced options, the calculator provides details about your monthly payment. Here’s what they mean:

Your monthly payment. This number is your total monthly payment, including principal, interest, taxes, homeowners insurance, mortgage insurance and HOA dues (if applicable).

FHA base loan amount. This figure represents the loan amount after making a 3.5% down payment. 

Upfront MIP (1.75%). The upfront mortgage insurance premium (UFMIP) is one of two types of costs  you pay for FHA mortgage insurance that covers the lender if you default on your FHA loan. You’ll typically finance (add) the 1.75% premium into your loan amount.

Total loan amount. Your total loan amount is the base loan amount plus the upfront MIP.

What the monthly payment breakdown results mean

The “Monthly Payment Breakdown” spells out the details of your total PITI (principal, interest, taxes and insurance) payment and includes:

      • Principal and interest.The calculator bases this figure on the loan amount, interest rate and the term of the loan. For a fixed-rate loan, the payment doesn’t change, but each month you pay more principal and less interest until you pay the balance off. This process is known as “amortization.”
      • Property taxes. FHA loans require the payment of your property taxes in your monthly payment. The lender uses the funds collected to pay property tax bills when they come due through an escrow account.
      • Homeowners insurance. Homeowners insurance protects you against losses from unexpected damage like fire or theft. The lender pays the yearly premium through your escrow account, 
      • HOA dues. If your home is in a neighborhood with a homeowners association, you usually pay dues monthly, quarterly or annually. However, you pay them separate from your regular monthly mortgage payment.
      • FHA MIP. The second type of FHA mortgage insurance is the annual mortgage insurance premium (MIP), which ranges from 0.45% to 1.05% of your loan amount depending on the loan term, loan amount and down payment. MIP is charged annually, divided by 12 and added to your monthly payment.

Do you qualify for an FHA mortgage?

Homebuyers with bumpy credit histories and higher debt loads often choose FHA loans for their lenient qualifying guidelines. Below is a snapshot of the minimum FHA mortgage requirements.

Down payment and credit score 580 with a 3.5% down payment. 500-579 with a 10% down payment.
DTI ratio 43% total debt including new mortgage. 50% possible with proof of extra payment reserves/
Employment history Two-year employment history preferred

How much do you qualify for with an FHA loan?

There are three factors that affect the maximum FHA loan you can take out. 

  1. FHA loan limits. As mentioned above, the FHA limits the loan size based on your location and property type. For higher loan amounts, consider a conforming conventional loan to borrow up to $548,250 for a single-family home in most parts of the country. 
  2. Debt-to-income (DTI) ratio. A measurement of your total debt divided by your gross income, FHA guidelines cap your DTI ratio at 43%. FHA lenders may make exceptions for borrowers with high credit scores and extra cash reserves.
  3. Buying a multi-family home. FHA loan limits are higher for two- to four-unit multifamily homes, plus you can qualify with the rent on the other units. The catch: You have to live in one unit as your primary residence.

How much are FHA closing costs?

You’ll typically pay 2% to 6% of the loan amount in closing costs for an FHA mortgage. A few things you should know about FHA closing costs:

You’ll pay the annual MIP for the life of the loan. The only way to get rid of MIP is to refinance to a conventional loan. However, if you make a 10% down payment when you buy your home, you can get rid of it after 11 years. 

You can ask the seller to pay up to 6% toward your costs. More commonly known as a “seller concession,” a seller can pay 6% to cover closing costs, including the FHA UFMIP. 

You may be eligible for closing cost assistance. Ask your lender if they offer closing cost and down payment assistance programs.

FHA loan FAQs

Most lenders offer FHA loans, but it’s always best to shop three to five lenders to make sure you’re getting the best deal.

No. The FHA does not set income restrictions.

If your credit score is under 620, or you have a high DTI ratio, an FHA loan may be your best option. Conventional loan requirements are stricter than FHA loans because they aren’t guaranteed by any government agency.

No. Anyone who meets the FHA loan requirements can qualify for an FHA mortgage through an FHA-approved lender.